Arizona Man Sentenced for COVID Loan Fraud and Tax Fraud

TUCSON, Ariz. – Roy Lane, 44, of St. David, Arizona, was sentenced on Tuesday by U.S. District Judge John C. Hinderaker to four years in prison, followed by three years of supervised release, for filing false tax returns and loan applications to obtain COVID-19 disaster relief. Layne previously pleaded guilty to two counts of Wire Fraud and one count of Filing a False Claim.

According to court documents, and evidence presented in court, to create the appearance that he was operating several businesses, Layne filed paperwork with the IRS, applied for a business license from the City of Tucson, opened business bank accounts, and filed false employment-related tax returns. In April 2020, he filed an application with the U.S. Small Business Administration, that claimed he operated a “wholesale” business with 17 employees that had revenue of more than a half million dollars a year. In 2021, he submitted a false application for a Paycheck Protection Act loan, claiming that same “wholesale” business had 31 employees and $1.2 million in revenue. Based on these and other false applications, Layne ultimately received over $300,000 in COVID-19 related loans to which he was not entitled.

Layne also used the personal identifying information and identities of other people to file false claims for refunds with the IRS. In total, Layne claimed over $7.4 million in false refunds, of which the IRS paid over $590,000.

In addition to the prison term, U.S. District Judge John C. Hinderaker ordered Layne to pay $856,692.91 in restitution to the United States.

IRS Criminal Investigation and the FBI investigated the case. Trial Attorney Matthew R. Hoffman of the Tax Division and Assistant U.S. Attorney Mary Sue Feldmeier, District of Arizona, Tucson, prosecuted the case.

CASE NUMBER:            CR-24-04907-TUC-JCH
RELEASE NUMBER:    2025-070_Layne

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

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